Warm Homes Plan - Consumer Protection Reform

Description

Disclaimer The information set out below is indicative only, provided for early stage market engagement and does not commit the Department to running a procurement. Scope, timelines, routes to market, contract values and duration are subject to change. Reform proposals are also subject to public consultation later in 2026. Introduction In January 2026 the Government published the Warm Homes Plan, setting out how it will help households reduce energy bills and transform the existing building stock into comfortable, future proofed low carbon homes. The Plan explains how home upgrades, including microgeneration measures (solar panels, batteries and heat pumps) and energy efficiency measures (insulation), will support bill reductions. Delivery of the Warm Homes Plan requires consumer confidence that work in homes is high quality. There are three priorities for reforming consumer protection for retrofit: Simplicity – the consumer protection system should be easy for consumers and installers to navigate. Right first time – clear accountability and oversight are needed to prevent poor quality installations, particularly insulation measures, and ensure work is delivered correctly in majority of circumstances. Swift remediation and redress – where issues do arise, consumers must have clear routes to remediation at no personal cost, with decisive action taken against noncompliance. The reforms propose oversight of consumer protection for energy efficiency and microgeneration installations in government schemes will be brought under closer government control. Please refer to the Warm Homes Plan for further detail. The Government is considering how best to reform delivery and assurance arrangements, including where direct government delivery or third‑party delivery is most appropriate. The system will apply to government‑funded schemes and, where appropriate, may also be used voluntarily for non‑government‑funded work. Delivery Model Assessment Delivery of consumer protection reforms is subject to an ongoing delivery model assessment within the Department. This assessment is considering a range of delivery models, including in‑house and outsourced approaches, and their implications for quality assurance, consumer protection, pace of delivery, value for money and system resilience. Understanding the capacity and appetite of the market to deliver a reformed consumer protection regime for government‑funded installations is essential to informing final recommendations. Scope of services Summary The primary objective of the consumer protection regime is to ensure consumers receive high quality, safe installations. Strong protections are essential to building trust in the retrofit market, with the system focused on preventing installation and non-installation issues, including mis-selling. Remediation and redress should be required only in exceptional cases. The service will deliver a coherent, well-governed and futureproof consumer protection system that supports DESNZ’s wider policy objectives and industry standards. A single system will apply across all retrofit measures, covering both energy efficiency and microgeneration. The system must operate transparently, resiliently and responsively, enabling DESNZ and other government partners to make informed decisions based on high quality information and clear accountability. Suppliers will be expected to provide the operational, technical and governance capability needed to ensure consistent performance, robust risk management and strong assurance. Contracts or agreements will support tighter government control, continuous improvement, adaptability to emerging policy needs, and alignment with departmental objectives, consumer needs and value for money. Possible delivery routes Two delivery models involving market actors are under consideration. In both cases, DESNZ will retain governance, contract management, performance management and intelligent client functions. The scope of services is broadly consistent across both options. Differences relate to who does what, number of delivery partners, and levels of operational responsibility, commercial risk and system integration. Feedback is sought on implications for capability, scalability, independence and delivery risk. Option 1: Inhouse hybrid model Core functions of the consumer protection service will be delivered inhouse by DESNZ or the Warm Homes Agency. This service would be supported by targeted select outsourcing of specific technical or specialist services. Integration will be managed by DESNZ. Option 2: Majority outsourced model The majority of the consumer protection service will be outsourced, via a contract or agreement to a prime supplier or a consortium of suppliers. The supplier will be responsible for administering the whole consumer protection service for government retrofit schemes, appointing, organising and managing their own supply chain to do so. Integration will be provided by the supplier. Scope of Services The four service areas below describe the full functional scope required. They do not imply that all services would be delivered by a single organisation or that market delivery would be appropriate for all elements. 1. Service Delivery This area covers frontend operational functions to provide an accessible experience for consumers and installers/retrofit professionals. It includes public and market channels, user journeys, casework handling, proactive communications, branding, and supply chain engagement. Required outcomes: Development and maintenance of an approved retrofit supplier list. This list would be an accurate register of approved retrofit professionals, eligible to deliver government funded retrofit work, with robust onboarding/offboarding and eligibility controls. Consumer protection service promotion and awareness. Delivery of accessible, visible and clear branding aimed at Installers/retrofit professionals and consumers to support understanding of the service and benefits. Consumer interface and casework process. An accessible public‑facing service with case management processes for consumers to support queries and redress. Installer/retrofit professional interface and lodgement process. Provision of an accessible industry-facing system for lodgement/upload of measures installed. Training and professional development. Support and guidance to industry to support compliance with standards and codes of conduct. This service does not duplicate the certification role of installer Certification Bodies. Responsibility splits and governance arrangements in a reformed system will be consulted on later in the year, as set out in the Warm Homes Plan. UKAS will continue to accredit Certification Bodies, and accreditation is out of scope. 2. Data, Technology and Intelligence This area covers the infrastructure and analytical capability required for secure and reliable operation. It includes data collection, storage and management, operation of a data warehouse, secure user platforms and use of data to identify risks and support improvement. Required outcomes: Data collection, storage and sharing. Provision of a secure data storage system with accessible user interface, real time access and defined data rights and sharing agreements. Data analysis and intelligence. Data analysis to provide insights to support operations of the consumer protection system. Data on installations and performance will be used to track issues and identify risks in the system. Information governance and security. Lawful, secure processing of data. Technology and digital services. Provision of reliable and accessible user platforms to support the operations of the consumer protection service. 3. Protections, Quality Assurance and Compliance This area provides the oversight and assurance framework underpinning trust in the system. It includes auditing, fraud and risk management, installer performance monitoring, proportionate enforcement and escalation where required. It also ensures appropriate financial protections for consumers. Required outcomes: Auditing, quality and risk management. Establishment and delivery of an oversight and audit regime, through a combination of proactive and risk‑based oversight. Financial protection mechanisms. Establishment, delivery and active management of a system that ensures consumers have valid financial protection, over a set time, to acceptable standards. Performance management and enforcement. Establishment, delivery and active management of a sliding scale of proportionate interventions to encourage compliance and quality installations. This should move from early preventative action through to formal enforcement and escalation to support redress and overall quality in the system. Standards are out of scope for this work, but we are aware of organisations with existing standard development functions, who may wish to have a specific discussion on this topic. As part of a separate workstream, DESNZ is continuing to sponsor BSI to produce the next amendment of PAS 2035/2030, planned for publication in Winter 2026, including a focus on conflicts of interest and innovation. 4. Contract Management and Governance This area provides the commercial, financial, reporting and governance framework needed to oversee performance and ensure effective operation. Required outcomes: Commercial, contract and financial management. Implementation of governance, reporting, processes and controls to deliver the service, support BAU and continuous improvement. Stakeholder and regulator liaison. Effective engagement with industry bodies and installer groups. Engagement with regulators and Other Government Departments. Mobilisation and exit from the contract.